The recovering economy of the Republic of Zimbabwe will witness a dramatic acceleration in the next few weeks just as it happened during the dollarisation era back in 2009.
This positive move is triggered by the agreement between Zimbabwe and South Africa government at the AU summit in Ethiopia Addis Ababa.SA finance minister Mr Gordhan said since Zimbabwe and SAfrica are both China’s trading partners,it was neccessary to make a co joint between the two entities.This will see Zimbabwe officially accepting the South African rand as its trading currency.
The discussions between the two came amid the visit of China Xi Ping who went via SA in a bid of Chinese government to invest in both countries.China is expected to cheer the two countries with over $20 billion thus the two countries (SA & Zim) had to agree on Rand use.
Minister Gordhan said the movement of the Rand into Zimbabwe’s banks commences in two weeks time.this development was cheered by many African head of states. South Africa home affairs minister also assured the safety of all Zimbabweans in SA and said his country will loosen screws on the 2017 deportation of Zimbabweans living and working in South Africa.
News 24 also reached president Zuma’s comment. “I’m very much impressed by such a great and historical event that will be witnessed between the two countries both economically and socially. Borders are now open to our sister country Zimbabwe.This will see also the stabilisation of the Rand since Zimbabwe already use the US dollar as a legal tender.
“Mr Zuma said.Zimbabweans no longer have to cry over cross rates back home since the rand will be available just like it was with Zim Dollar.Many Zimbabweans celebrated to this move.This will mark the Dawn of Zimbabweans all over the Globe.Another Zimbabwean woman interviewed almost cried as she narrated the hardship she faced to pay for her kids fees and make ends meet with the manupulated rand in Zimbabwe.She thanked the SAfrican government. Bussinessman Mr Vanhoogstraten said such applauded and long awaited moment has come.
Zimbabweans wil now see prices going down as they have never dreamt of.Prices tagged under the Rand will be almost as equal as in SAfrica.take for instance a product goin for R2000 in SA,the same will be goin for R2100 in Zimbabwe.Those who will see heaven on earth are the ones in possession of the greenback(USD)like the mining and tobacco sectors.these will be the rich of all time since the USdollar is in demand always.
We rally behind the GER(Global Economic Recovery ) and this has already started.Zimbabwe is now standing its ground economicaly. Load shedding is the talk of the past.if u hear anyone telling you about electricity cuts,know that he was not in Zimbabwe”he said.
Agriculture minister Gugile Nkwinti said South Africa buys tobacco from Zimbabwe ranking fourth as its major customer.He emphasised on financing many upcoming tobacco companies as well as farmers as this will boost the struggling SA economy. Communications companies like MTN and Vodacom are waiting for the green light so they could start operation in Zimbabwe.
Banks like The Standard Bank said with the Rand being officially used in Zimbabwe it will restore bankers confidence again.However this will slightly affect cross border traders as not all traditional products need to be brought into the country due to price equality.
Source – Online